La Presse 21 Feb 2004
For every hit, there are lots of failures
Quebec cinema has its own economics; who risks what?
Of the $10 cost of a cinema ticket, $5 goes to the owner of the theatre. That’s what keeps the giant American Famous Players or the little Beaubien cinema in Rosemont in business. The other half of the ticket price goes back to the investors, both public and private.
At this time when Quebec cinema is
making millions of dollars, what happens to the money?
”Those who take the risks in
the film industry make money from the film industry,” replies Charles Binamé,
director of the biggest commercial success in the entire history of Quebec
cinema, Séraphin - Un homme et son péché. This feature has made more than
eight million dollars at the box office. This is followed by La Grande
Séduction by Jean-François Pouliot, nominated for a Jutra as best film of
the year, which has taken $6,751,575. In addition, the three films in the Les
Boys series have earned almost 17 million.
”It’s the same principle as
roulette,” Binamé continues. “The more you stake, the more you can win. But it’s
also possible to lose the lot.”
If the film doesn’t do well, it’s
the distributor who takes the rap. “When a film bombs, it’s always the
distributor who pays,” confirms Guy Gagnon, president of Alliance Atlantis
Vivafilm, who have just released Vendus (which survived only two weeks on
release) and Dans l'oeil du chat.
The distributor of a film
invests from the beginning of the project, advancing at least 10 % of the cost
of production. In addition, all the publicity falls to the distributor, and the
bigger the campaign, the more the costs mount up. If it’s a flop, he loses his
stake; if it’s a success, he pockets the entire amount.
As in the case of Séraphin.
Patrick Roy and Guy Gagnon of Alliance maintain that they gambled their jobs on
this venture. The publicity and marketing costs soared, but Alliance – who
distribute the four films nominated for a Jutra for best film – decided to pull
out all the stops and gamble on its profitability. A successful gamble,
evidenced by Séraphin’s 8 million dollar takings. So four
million dollars went to Alliance. As is the norm for the industry, the
distributor took a 35% commission, as well as recovering the marketing expenses,
around 2 million.
They will also recover the
expenses invested in the production, what is called in the cinema “the minimum
guarantee”, and which hovers around 10 %, depending on the agreement drawn up
with the producer. As Séraphin cost 6.6 million, you can calculate that
Alliance contributed around $500,000 towards production costs.
The remaining money, if there is any, is returned to the producer who will have
to pay half to the investors, Téléfilm Canada and la Société de développement
des entreprises culturelles du Québec (SODEC), who advance around 65 % of
the production money. Add to this public contribution an additional 20 % in tax
credits to the producers. In total, public funds represent 85 % of the
production costs of a film.
The rest of the budget is completed
by the “minimum guarantee” - 10 % - mentioned above, and by 5% invested by the
producer, who can reduce his stake by selling the distribution rights for his
film to television broadcasters.
In the entire history of
Quebec cinema, the only film to have paid Téléfilm and SODEC back all the money
borrowed is Le Déclin de l'Empire américain, thanks to its international
success which earned substantial additional revenue. Will Denys Arcand repeat
this feat with Les Invasions barbares? The film took a little under five
million at the Quebec box-office, but it will attract significant revenue from
overseas sales. Denise Robert, the producer of Invasions, says that she
will wait until it’s run its course in the theatres before doing her sums.
The DVD industry
So much for successful gambles. But
there are also losing gambles. Les Dangereux, for example, a monumental
flop which, after a short run in the cinemas, put Christal Films into a deficit
of around a million dollars.
Distributors and producers can, however, recover a box-office failure by sales
to television and to DVD and video stores. In the case of Les
Dangereux, the film did well on DVD, both here and abroad: Louis Saïa’s
feature film could be found in video clubs in 17 countries. These international
sales brought in around $250,000 for the distributor, Christal Films. This being
the case, at the end of the day the Quebecois distributor reduced its losses due
to the failure of the film in the theatres. Les Dangereux finally cost
Christal around $300,000.
Some films are naturally
destined to do better on video. “Films for young people, for example” says
Sylvain Gagné, vice-president of Christal. Others benefit from good word of
mouth. A film like La loi du cochon took $150,000 at the cinema and
$100,000 in the video clubs.
Revenues from the video stores and clubs go mainly to the distributor who pays
for the marketing and the manufacture of the tapes. The distributor can choose
to sell these tapes to the video club owner at a good price, or to considerably
reduce the sale price in return for part of the profit from each store. The
producer will also receive a share, around 10 % of the profits. But, like the
box-office revenues, he has to return half to the investors.
”You have to understand that this idea that you can make money out of film is
very new for Quebec,” says Charles Binamé. Séraphin was profitable, but
all the same we had to make 4 million in ticket sales in order to cover our
costs.”
And the artistes?
Irrespective of the film’s revenue, the artisans - directors, actors,
scriptwriters, technicians – receive a fixed salary. In Quebec, actors don’t ask
for a percentage of the takings as is sometimes the case in the United States.
On the other hand, those who are the stars of the big screen can make up to
$8,000 per day filming.
The director also has a fixed fee, priced according to the rates of the
Directors’Guild, but he can negotiate a bonus. However, he has no access to the
famous performance bonuses awarded by Téléfilm Canada which go directly back to
his producer. If he fancies working with someone else for his next film, too
bad. His success will benefit another filmmaker.
“A lot is spoken about money and success for Quebecois cinema,” says producer Claude Veillet, of Films Vision 4 (La Mystérieuse Mademoiselle C, Le Dernier souffle). “Who makes money in Quebec cinema? I think one should ask who profits from Quebec cinema. The answer is lots of people : the artistes, the technicians, the producers, the distribution companies. And the State, who gets taxes from all these people. But I think that in the end, it’s the public who benefit most”.